Letting Agents renewal fee?

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R
Roland
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Dear RLA,
Can you clarify whether I'm in any way legally bound to pay my letting agent a newewal fee if my current tenants continue to stay in my property without tenancy agreement in place or with one drawn up through RLA?
Here are the terms & conditions as according to their contract.
INTRODUCTION & TENANCY SERVICE
First term - 8% Sole agency First term - 10% Multi agency Minimum term 12 months Renewal Year 1 - 8% Renewal Year 2 - 6%
Landlordís Obligations to pay Renewal Fees

  1. In the event that the Tenant remains a Tenant at the Property (whether directly or via an associated person or company), after the expiry of the original term of the Tenancy Agreement, then the Renewal Fee is payable by the Landlord to Keatons.
  2. The Renewal Fee is the relevant percentage specified in these Terms and Conditions (+ VAT) multiplied by the rent payable by the Tenant for the Property during the Extension Period.
  3. The Extension Period is:

(a) the duration of any and all renewals or extensions of the Tenancy Agreement whether or not the renewal(s) or
extension(s) is (or are) finalised or negotiated by Keatons; and
(b) the duration of any and all Tenancy Agreement or agreements with the Tenant (whether directly or via an
associated person or company) in respect of the Property which is (or are) subsequent to the original term of the Tenancy Agreement, whether or not the subsequent agreement(s) is (or/are) finalised or negotiated by Keatons; and
(c) the duration of any and all period or periods of holding over by the Tenant (whether directly or via an associated person or company) subsequent to the original term of the Tenancy Agreement, whether or not the terms of the holding over are finalised or negotiated by Keatons.
  1. For so long as the Tenant (whether directly or via an associated person or company) remains a Tenant at the Property after the expiry of the Tenancy Agreement without having agreed to remain for a fixed period or holds over, then the Renewal Fee shall be due and payable by advance instalments every quarter with the first such instalment being due on the first day of the Extension Period. The Landlord shall then be entitled to a pro rata refund of part of such advance payment if the Extension Period expires before the end of any prepaid period.
  2. In the event that the Tenant enters into any agreement or agreements to remain at the Property for a fixed period after the expiry of the Tenancy Agreement then at the commencement of each such period the Renewal Fee for the whole of that fixed period shall be due and payable quarterly by the Landlord to Keatons.
  3. If any extension of the Tenancy Agreement or subsequent Tenancy Agreement contains a break clause and the Tenant vacates the Property, terminating the extended Tenancy Agreement or subsequent agreement in accordance with provisions of that break clause, the Landlord shall be entitled to a pro rata refund of Renewal Fee from Keatons for the remaining part of the term of the extended Tenancy Agreement or Subsequent Agreement.

Kind Regards
Roland

22/05/2017 11:07

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